Professional Documents
Culture Documents
Online contracts are classified as distance contracts, which means that the trader (service
provider, seller) and the consumer (natural person who is acting for purposes which are outside
his trade, business or profession), in lack of their simultaneous, actual and physical presence
enter into contract not by meeting in person (e.g. in commercial premises, market, open-air
market, via trade agent etc.), but only in an electronic way.
http://magyarefk.hu/en/useful-information/online-shoping/the-definition-of-online-shopping.html
Online shopping
Updated: 10/17/2017 by Computer Hope
The process of searching for and purchasing goods and services over
the Internet through the use of a web browser is referred to as online
shopping. The main allure of online shopping is that consumers may
find and purchase items they need (which are then shipped to their
front door) without ever needing to leave the house. Today, almost
anything can be purchased through online shopping, amounting to
billions of dollars a year in sales.
https://www.computerhope.com/jargon/o/online-shopping.htm
The act of purchasing products or services over the Internet. Online shopping
has grown in popularity over the years, mainly because people find it convenient
and easy to bargain shop from the comfort of their home or office. One of the
most enticing factor about online shopping, particularly during a holiday season,
is it alleviates the need to wait in long lines or search from store to store for a
particular item.
noun
Online shopping is defined as purchasing items from
Internet retailers as opposed to a shop or store.
Billeo toolbar: With perhaps the most functionality, billeo.com helps with
shopping, discount codes and bill paying. It will autofill your logins and
passwords to retailer sites, as well as forms for your shipping and billing
addresses and credit card information. On the checkout page, it will alert
you if a discount code is available for your purchase and autofill the code.
Billeo will save transaction confirmation pages to provide a shopping
history. And it aids with paying via vendor sites.
PriceProtectr toolbar: What if the price for an item drops soon after the
purchase? Many retailers offer price-protection policies that refund the
difference within a certain time frame, such as 30 days after purchase.
Priceprotectr.com/toolbar.jsp makes it easy to log your purchases at its
Web site, which alerts you by e-mail if the price drops within the retailer's
price-protection period. Available for IE and Firefox.
*Profits. Companies that make toolbars offering coupon codes and steering
you to lower prices earn money by driving traffic to retailers.
*Rewards. You can grab some of that affiliate money by joining and using a
shopping rewards program, such as FatWallet.com.
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Gregory Karp is a personal finance writer for The Morning Call, Allentown,
Pa. E-mail him at yourmoney@tribune.com
SITUATION ANALYSIS
Half the buyers of branded fashion watches are between 18 and 34 years of age. This group, which
purchases more watches per capita than those older, is our primary market segment. Watch purchases are
more likely by consumers in the northeast and Midwest. Many purchases are expected to be impulse,
requiring strong point-of-purchase support. Seventy percent of the market is concentrated with strong
competition from Swatch, Fossil, Guess?, and Anne Kline. We have extensive experience in the
manufacture of innovative, high quality, precision plastics and timing devices permitting us to offer the
consumer value in a branded fashion watch. Additionally, we have experience distributing products into
75 percent of the outlets for branded fashion watches.
OBJECTIVES
The combination of a unique, cost-effective design allows us to establish a three percent market share in
the first year. The Spree watch project will break-even in 1998.
MARKETING STRATEGIES
General will introduce a new product, the innovative Spree watch, using penetration pricing, extensive
advertising, and expanded distribution in order to increase our revenues and growth rate.
ACTION PLAN
The Spree watch has strong product benefits compared to current market offerings. To achieve our
objectives we will offer our unique watch in a variety of designs at a suggested retail price of $45. Our
current distribution covers 75 percent of the market. At this time we will not expand our distribution to
access the jewelry store retail channel. We will increase our sales force by 5 persons and add a sales
trainer to support for our market plan. Advertising of one million dollars will emphasis the unique design
of the watch and is weighted toward print and point-of-purchase displays. This and television advertising
will be scheduled two-thirds in the first six months of the campaign. To achieve consumer awareness in
the first year, our advertising voice share will be considerably higher than that of the four market leaders.
We expect first year sales of 8.5 million dollars and project break-even for the project in the first year.
CONTINGENCY PLANS
If the competition increases advertising or our sales are less than expected, we are prepared to add as
much $500,000 to our advertising budget.
General's core business is industrial timing devices and consumer clocks, based on
skills in manufacturing high quality timing movements and plastic casings. This
market plan is based on providing consumers with a high quality, innovative watch. It
will be offered in a variety of styles for both men and women. The casing and
movement has other potential applications not discussed in this plan.
Our 1995 profits of 30 million dollars represent 7.5 percent of total sales. Sales
growth has slowed to a current level of 5 percent annually. Growth in current markets
is expected to be limited. The Spree watch is one of several projects with the potential
to improve General's growth rate.
Market Analysis
The Spree watch will compete directly with several other branded fashion watches.
The market size for branded fashion watches is forecast to be $524 million retail
dollars in 1998, growing to $721 million by 2002. Annual market growth is expected
to exceed six percent through 2002, exceeding our current annual sales growth.
Market Segments
Table 1: Market Segments by Age
Company Analysis
SWOT Analysis
Strengths
Weaknesses
Opportunities
Large market
OBJECTIVES
Market share of three percent of the branded fashion watch market in the first year [sales
of over 8 million dollars].
Project break-even in 1998.
MARKETING STRATEGIES
General will introduce a new product, the innovative Spree watch, using penetration
pricing, extensive advertising, and expanded distribution in order to increase our
revenues and growth rate.
ACTION PLAN
Product
We will introduce between 30 to 40 different designs in the first year. One quarter of
these will have a "metal" case, copying many of the traditional and modern metal
designs. These are targeted at consumers 25 and over. We will design a series
including licensed characters and unusual shapes for the market segment under 24
years of age. Swatch does not have exclusive licensing for Disney and Warner
Brothers characters or Coke. By using these and others we will have a variety of
product and character designs in our line. The most unusual aspect of our line will be
some very unusual shapes. Several of these will be geometric; hexagon, trapezoid,
oval, and diamond. For younger ages our technology allows the design of watches in
the shapes of cartoon character faces.
Price
The Spree watch will be sold for a suggested retail price of $45. We believe that we
have product quality and feature advantages, encouraging the use of a price slightly
exceeding Swatch. This pricing strategy, coupled with our efficient production
methods, aids in achieving our relatively high market share for a new product entry.
Distribution
We will introduce Spree in the northeast but within the first year sell to the national
market. With our current strong distribution channels nationwide covering 75 percent
of watch sales, we will limit our potential if we restrict our distribution to specific
regional markets. Although we do not currently have jewelry stores, our distribution
will place watches in at least 75 percent of locations in the United States. We will use
current normal distributor markups.
Promotion
Five new sales representatives will be added to assist in the development of new
distribution outlets. A sales trainer will be hired to train the sales force in the new
product. This will be within our $500,000 sales support budget based on an average
salary and benefits cost of $100,000 for each position.
The advertising level for the four leading firms can be compared by determining the
ratio of voice share (% of total advertising dollars of $20 million) divided by the
market share as shown in Table 3. Consumers will not know our brand; therefore, we
will have to advertise more aggressively to achieve brand awareness. Although our
market share goal in 1998 is three percent, we will set advertising at one million
dollars. This will achieve an advertising voice/market index considerably higher than
our competition.
Table 3: Fashion Watch Advertising and Voice
Media will be targeted to our major market segments; women between 18 and 24 and
between 25 and 34. Smaller amounts will be directed to other segments.
In conclusion, we will invest one million dollars in the Spree watch project. We can
achieve sufficient market share to achieve our financial and marketing objectives.
During the next five years the market is expected to grow and our costs are expected
to decline with experience increasing unit contribution. Our greatest challenge will be
tracking the market's tastes in watch design and meeting and leading these with
creative and innovative designs.
CONTINGENCY PLANS
Table 4: Impact of Advertising Levels on Financial Results
TOTAL AD BUDGET BREAK EVEN YEAR NET PRESENT It is not expected that there will be increased
price competition due to the entry of the
VALUE IN MIL. $
FINANCIAL APPENDIX
TABLE 1: PRO-FORMA INCOME STATEMENT AT $50 PRICE
BEFORE
INCOME STATEMENT RELEASE 1998 1999 2000 2001 2002
SALES REVENUES $6,288,000 $13,776,000 $22,176,000 $32,256,000 $43,260,000
VARIABLE COSTS $3,144,000 $6,428,800 $9,979,200 $14,246,400 $17,304,000
FIXED COSTS $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
PROFITS ($1,000,000) $1,144,000 $5,347,200 $10,196,800 $16,009,600 $23,956,000
CUMULATIVE PROFITS $144,000 $5,491,200 $15,688,000 $31,697,600 $55,653,600
NET PRESENT VALUE $35,309,732
TABLE 2: PRO-FORMA INCOME STATEMENT AT $45 PRICE
BEFORE
INCOME STATEMENT RELEASE 1998 1999 2000 2001 2002
SALES REVENUES $8,488,800 $15,498,000 $26,611,200 $36,288,000 $42,827,400
VARIABLE COSTS $4,716,000 $8,036,000 $13,305,600 $17,808,000 $19,034,400
FIXED COSTS $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
PROFITS ($1,000,000) $1,772,800 $5,462,000 $11,305,600 $16,480,000 $21,793,000
CUMULATIVE PROFITS $772,800 $6,234,800 $17,540,400 $34,020,400 $55,813,400
NET PRESENT VALUE $35,823,504